When to Wait

CJ, Maleeah, and Shawn tak about when you should wait to take Social Security and when it might not be the best idea.

Episode Transcript

(00:00):
This is Money in Motion with CossFinancial, a fun and informative show designed
to help you get answers to allyour retirement questions in one place. Cetiphone
lines are open for you right now. Love to hear from you this morning.
If you have questions for our retirementfinding professionals from COSS Financial, I
get a news pickup phone gifts aring six oh eight three two one thirteen

(00:21):
ten. That's six oh eight threetwo one thirteen ten gets you on the
air with CJ and Malia from CossFinancial. Trovegate. Can learn more about
COSS Financial on their website coss financialdot com. That's k l aas Financial
dot com. Great website resource tolearn more about COSS Financial. Also an
opportunity to listen back to the podcastand subscribe to the weekly Market Pulse newsletter.

(00:44):
Again, that's all available to youat cossfinancial dot com and the telephone
number six oh eight four four twofive six three seven. No charge for
that initial get to know you appointmentat costs Financial. It will be complementary
to you. Again their telephone numberssix oh eight four four two five six
three seven and then number to geton the air. This morning. Six
SOH eight three two one thirteen ten. That's six SOH eight three two one

(01:04):
thirteen ten. Without any further adue, let's welcome in CJ and Malia.
CJ, how you doing this week? I'm doing great. Good morning,
Sean, good morning. Great totalk with you. Malia. How is
your Christmas in New Years? Verygood? Happy New Year to you.
It's great to be back on withboth of you. We got the gang
all back together, and we've gota really important conversation to add something.

(01:25):
I know that people really can takesome time for good reason to consider,
which is delaying taking your Social Securitybenefit in those eight percent credits, what
that means, and some of thethings to think about when you make that
plan. We'll get the details fromCJ Closs and Malia Quavis this morning in
our conversation on Money in Motion hereon thirteen ten Wiba, as mentioned,

(01:46):
phone lines are open. Six SOHeight three two one thirteen ten. That's
six oh eight three two one thirteenten. Coming up a little bit later
in the program, I'm gonna dothe Closs Quiz question the week, a
chance for you to win a fantasticprize to one of my favorite places on
Earth the twenty five five dark giftcard to the Cheesecake Factory from our friends
at Class Financial. Little tip listenclosely to the program because often both the

(02:07):
question and answer to the class Quizquestion the week come up during the program.
And again we'll tell you the detailson how you can win that a
little bit later in the show.And before we start our conversation about delaying
Social Security benefits and some of thethings to be weighing and considering there,
let's take a look back at lastweek's class Quiz question the week. Get
the question and the answer there aswell. Yeah, so last week we

(02:28):
had a great conversation regarding whether ornot you might want to seek out a
financial planner, the pros and consof utilizing one, or if you want
to remain a do it yourself forso, great conversation last week, and
the question was true or false.In twenty twenty two, approximately thirty five
percent of Americans worked with a financialplanner. The answer was true And a

(02:50):
shout out to our winner that soundslike a stage name, Marlene of Monona
just goes really well. Congratulations thereher. She was the first one that
replied with a correct answer, soshout out to her. Listen carefully for
today's question. Congratulations Marlene, anddon't forget you too. We'll have a
chance to win later on in theprogram with the class quiz question of the
week. Tell phone lines they areopen for you if you've got a question

(03:13):
about this week's specific topic or anythingwhen it comes to retirement planning in general,
we'd love to hear from you.Sixh eight three two one thirteen ten.
That's sixh eight three two one thirteenten. As mentioned, we are
going to be discussing whether it makessense to delay taking your Social Security benefit
until the age of seventy and ofcourse take advantage of that eight percent credits
that take place. And I guessthe question is should we wait CJ or

(03:36):
should we take? Yeah, thatis the million dollar question, isn't it.
So? I do encourage people ifyou have questions about this as we
go through this topic today, feelfree to call in because there's a lot
of interesting nuances to social security,especially when you apply it to different family
circumstances, so you know, secondmarriages and death of a spouse and Emilyiah.

(04:00):
We'll be talking about some of thatmore as we move forward. But
here's the key. The decision whento claim social Security is a top concern
for retirees, and it's for agood reason, because claiming too early and
locking in a lower payment can proveto be a mistake for people who experience
longevity. Of course, while delayingin order to secure a higher payment could

(04:20):
perhaps have a problem if you diesooner than expected, which could leave money
on the table. And we shouldnote that for most people planning for retirement,
sociecurity remains an important part of theirfuture income. For some perhaps it's
their only source of income. Andthat's actually true for twenty percent of the

(04:40):
population, or I should say twentypercent of the population receiving Social Security benefits
that it's their only source of income. In fact, more than sixty six
million Americans currently collect Social Security.Another seven point five million collect what are
called supplemental Social Security income benefits.So that is a lot of Americans.

(05:01):
I think last I checked, there'sabout three hundred and twenty million total Americans,
and so you're talking sixty six plusseven, you're talking a seventy million
plus of the three hundred million orso here in the United States are receiving
some sort of benefit through social securityor social security supplemental income sources. So
the first question is when can youfirst take your soci security benefit versus perhaps

(05:25):
when the benefit is most ideal foryour situation. And so you've heard us
talk about this on the air before. But you can choose to collect your
own benefits starting as early as agesixty two or any time up until your
age seventy. Now, what we'refocusing on here is social security retirement benefits.
There are other benefits you can receivethrough sociecurity. We just mentioned one

(05:46):
earlier, the supplemental soci Security incomebenefits, but for now we're focusing on
retirement benefits. So the earliest beingsixty two, the latest generally being seventy,
is the age range in which Americacan start their social scurity benefits.
Now, those who collect early,which is defined by Social Securities anything prior

(06:08):
to your full retirement age. Okay, so we talked about sixty two up
to seventy, but it's defined asanything early is before your full retirement age.
And if you draw early, you'llget something less than your full retirement
age benefit amount, which is whythey call it a reduced benefit but of
course this term full retirement age,known as FRA, you have to know

(06:31):
what that age is. So ifyou were born between nineteen forty three and
nineteen fifty four, your full retirementage is sixty six. If you are
born between nineteen fifty five and nineteenfifty nine, your full retirement age is
sixty six plus some number of monthstwo months, four months, six months.
If you were born after nineteen sixty, which I was, so I'm

(06:55):
raising my hand here, my fullretirement age or yours would be sixty seven.
So again, think of it asthree critical ages. Sixty two is
the earliest I can draw, butit's going to be a reduced benefit.
Sixty seven, in my case ismy full retirement age amount. And then
if I wait beyond sixty seven,I can wait up until age seventy.

(07:16):
Okay. So those are kind ofthree key distinct ages to know about now.
When you delay your retirement past yourfull retirement age, social security benefits
are increased by a certain percentage ifyou delay that benefit. These are known
as delayed retirement credits, and theycan allow your benefit to increase up to
eight percent per year until you starttaking benefits, or until you reach age

(07:42):
seventy. So to be clear,delayed retirement credits of eight percent per year
would be applied to your Social Securitybenefit if you wait to collect beyond your
full retirement to age. So inmy case at sixty seven, if I
waited to sixty eight, I wouldhave eight percent, more to sixty nine,
another eight percent, and then toseventy. It is kind of my

(08:03):
maxed out benefit at age seventy.It's pretty nice feature there. As we
talk with CJ. Closs and MaliaQuavis, our retirement planning professionals from Class
Financial. It's a new year,it's a great day to get on the
phone and give us a call.If you've got a question. CJ and
Malia would love to answer it foryou. I got to just give us
a call at station six oh eightthree two one thirteen ten. That's six
oh eight three two one thirteen ten. Learn more about Class Financial on their

(08:26):
website colss financial dot com that's cossKlaas Financial dot com and their telephone number
six oh eight four four two fivesix three seven. So, CJ,
what's the bottom line with this stuff? Yeah, bottom line is if you
collect early, your payment will bereduced by as much as thirty percent from
that full retirement age amount. Soagain solid security, if you views that

(08:46):
as your unreduced benefit amount at yourfull retirement age. But if you draw
early, you know, at sixtytwo, let's say, it could be
reduced by about thirty percent. Butif you wait and apply late, so
think of this as that eight seventyamount, your payment goes up by as
much as thirty two percent. Andsince those eight percent delayed retirement credits stop

(09:07):
at age seventy, there's really noreason to wait beyond age seventy. So
again, think of it as thiswindow for retirement benefits between sixty two and
seventy. Somewhere in the middle ofthat, at sixty six and some months
or sixty seven is your full unreducedbenefit amount. If I draw early,
it's reduced. If I wait,I get like more than one hundred percent
right one awight or one hundred andsixteen percent. So that is the concept,

(09:30):
or that's the language that Social SecurityAdministration uses to discuss this. Now
some interesting statistics. Statistically speaking,you will receive roughly the same total dollar
amount whether you start claiming at sixtytwo or seventy or any time in between.
That is, assuming you live toaverage life expectancy. So here's the
point. We hear this all thetime. People go, oh, social

(09:54):
Security wants you to wait because theyknow they're running out of money, and
so they want you to wait toseventy. That's why they're giving you more
money. Wrong. Wrong. Asa matter of fact, statistically speaking,
they could care less, because ifyou die at average American mortality, you
will get exactly the same dollar amountwhether you draw at sixty two or seventy.

(10:16):
Now, interestingly enough, that's notto say that there's not strategy and
when to draw relative to your longevity. Because if you know that everybody in
your family lived way beyond average lifeexpectancy and they lived at ninety to one
hundred years old, well that's interestingbecause social Security may not care when you
draw, but you do, becausenow you could wait to say age seventy,

(10:41):
get that highest dollar amount, andthen live long enough to be money
way ahead because of the longevity inyour family. Or let's say the opposite
is true, and you retired atsixty two and everybody in your family didn't
live beyond age seventy, Well,my goodness, you want to start that
thing as soon as you can,especially if you have some sort of chronic
illness. There are ways to makeeducated, smart decisions. But I will

(11:03):
tell you when you talk to mostmost people, the main reason they are
drawing social Security is because one theyretired and they want the income. Two
they're fearful that soci Security will runout of money, so they just you
know, take the money and runkind of attitude. Or three because a
friend or family member told them to. And what we would say is all
of those are fine. They're maybe just not the full scope of the

(11:26):
considerations of what you should be lookingat. So you know, as I
end my section here and pass itoff to Malia here in a moment,
just would really encourage you. SocialSecurity can be a big part of your
future income stream, and so youdo want to be aware of what your
options are and kind of that idealtime for you to be drawn. These
are important things to be planning on. Don't forget. As we talk with
Cjmalia, phone lines are open foryou. Love to get you on the

(11:48):
air six O eight three two onethirteen ten. That's three two one thirteen
ten or more online coss Financial dotcom that's coss K l AA S Financial
dot com. And of course they'retelephone numbers eight four four two five,
six three seven. No charge forthe initial get to know your appointment tech
Loss Financial. It will be complimentaryto you again the number six oh eight

(12:09):
three two one thirteen ten to geton the air at six so eight four
four two five six three seven tocontact Loss Financial. And the reason I'm
getting my phone numbers jumbled up abit here. It's got a note from
a call or didn't want to goon the air, but Jane from Madison
called and said I wanted to knowshould you have federal withholding taken from your
Social Security? And Jane called inand what do you want to go on

(12:31):
the air? I understand that,but cj what's the what's the guidance there?
Well, first off, Jane,thanks for submitting the question, and
please others call in. We actuallylove it. Keeps us on our toes,
makes us think proactively. And yes, this is a live recording.
By the way, this does goout on the live air, So if
you stump us then you can youknow that's your claim to fame. Okay,

(12:52):
Jane, great question, Should youhave federal incomesax with held from your
Social Security benefit. Absolutely, ifyou will owe federal income tax. So
the amount of tax you owe onyour soci security is driven by your total
income, and there's a calculation thatyou can look at is called provisional income.
But if you look at that totalincome between you know, pensions and
Social Security and portfolio distributions and maybepart time working income, it will come

(13:16):
up with some sort of you know, effective or marginal tax bracket that you're
running into. We would focus onthe effective, and then you can add
a tax withholding. There's actually aform, I think it's called the w
WP four form or something like that, but it's a Social Security Tax withholding
form. It's readily available online ifyou just Google for it, and you
can fill that out and easily adda tax withholding. Or for those of

(13:39):
you who have an SSA dot govlog in, you can actually log in
and write through your log in ata federal income tact withholding. So the
answer is absolutely, but you needto know how much to be adding to
that, and your accountant or advisorshould be able to give you guidance.
Fantastic question. You two can belike Jane loveda. Have you join us
this morning. I can just pickup hone gifts call six so eight three
two one thirteen ten. That's sixoh eight three two one thirteen ten.

(14:01):
Get you right on the air withour retirement planning professionals from Class Financial,
CJ Class and Malia Quavis. Thewebsite coss Financial dot com. That's k
l Aasfinancial dot com. Fantastic websiteto learn more about Class Financial. Also
an opportunity to listen back to thisin previous shows podcasts again all available to
you at Cossfinancial dot com. Theirtelephone number six oh eight four four two

(14:22):
five six three seven. No chargefor the initial get to know your appointment
tech Loss Financial. It will indeedbe complimentary to you again their telephone number
six oh eight four four two fivesix three seven, and the studio lines
are open at three two one thirteenten. That's three two one thirteen ten.
We'll take your call next to alsotalk with Malia about some of the
benefits in delaying your Social Security benefitwith those details from Malia and take your

(14:45):
call next. As Money in Motionwith Class Financial continues here on thirteen ten.
WIBA. This is Money in Motionwith Class Financial, a fun and
informative show designed to help you getanswers to all your retire Ironman questions in
one place. Our phone lines areopen for you right now six oh eight
three two one thirteen ten. That'ssix oh eight three two one thirteen ten,

(15:07):
chatting with our retirement planning professionals fromClass Financial, CJ. Closs and
Malia Quavis. The website for ClassFinancial class Financial dot com. That's klaas
Financial dot com and their telephone numbersix oh eight four four two five six
three seven. No charge for thenational gets to know your appointment at Loss
Financial. It will be complimentary toyou again. Their number six oh eight
four four two five six three seven. The number to get on the air

(15:28):
this morning is six oh eight threetwo one thirteen ten. That's six oh
eight three two one thirteen ten.Headed on over to the Dodge, Columbia
County line and Pat from Randolph joinsus this morning. Pat, welcome to
the program. You're on the airwith CJ. Closs and Malia Quavis.
We have Pat. Oh we're nothearing from Pat. Pat was had a

(15:50):
uh at a question about social securityand other sources of income. Did we
yes? Yes? She said thatshe has a uh some rental income and
wants to work part time after she'sretired. How does that affect your Social
Security? Oh, another great question, Leave that to UCJ. Yeah,
so real quickly, pat Well,great question. This is where that full

(16:15):
retirement age date or age matters foryou a lot. So as I mentioned
for myself, based on my dateof birth after nineteen sixty, my full
retirement age is sixty seven. Forsome of our listeners that age could be
sixty six and six months. Itjust depends on when you were born.
But identifying that age is critical becauseif you're working and generating income before your

(16:38):
full retirement age and you decide towhat we call double dip. Right,
the double dip is I'm not yetfully retired, I'm generating working income.
It's active working income. So passiveincome from real estate rental income does not
count towards us, by the way, But if you are generating active working
income and drawing Social Security simultaneously,that's that double dip. Then social Security

(17:03):
limits the amount of earnings you canhave before they start taking back some of
that Social Security benefit. Now theydon't actually take it back and just steal
it from you. They just it'sa calculation that they put it out beyond
your full retirement age. But thepoint being they're disincentivizing you to have active
working income while also drawing Social Securitybefore your full retirement age. Now,

(17:26):
once you reach full retirement age,you can double dip all day long.
So you could be say sixty sevenyears old, turn on your Social Security
and have half a million dollars ofworking income. Soci Security doesn't care.
It's between sixty two and your fullretirement age. If you go to do
that double dip, you got tobe careful. And that number, by
the way, is about twenty ishthousand dollars of working income. Once you

(17:48):
go over that level, that's whenthey start taking benefits back from you.
So great question. I love it. Great question, great calls this morning.
Pat, Thank you so much.You two can be like Pat.
Love to get you on the airpadas well as I else. I had
heard from Jane this morning. Sixeight three two one thirteen ten. That's
six oh eight three two one thirteenten. If you've got a question for
CJ and Malia love to have youjoin us. And so Maliah, when

(18:10):
we talk about some of the otherbenefits. There are some excuse me,
some benefits to delaying your Social Securitybenefit, aren't there absolutely? So the
first pro we'd like to point outis you're locking in a larger lifetime quotations,
lifetime stream of income, which isreally really important to understand that.
It's probably the most obvious reason infavor of delaying, as CJ was explaining,

(18:36):
but it goes beyond the higher monthlypayment at the beginning. Most people
think of that larger starting amount asthe sole reason to delay, but it's
not the biggest reason, which isthat the delay leads to substantially higher monthly
benefits in your eighties and nineties.So that's really a question mark for yourself,
you know, does there's no guarantees, but does longevity run in my

(18:59):
fan? Am I going to behere into my nineties and so forth?
So that may be a reason tolock in that larger lifetime stream of income.
CJ said, Social Security doesn't care. He's probably right about that.
They really don't care when you decideto collect, but it is a personal
decision. Hopefully when you'll sit downwith your advisor and kind of try to

(19:22):
map that out. The second prois your benefit increases each year you delay,
as CJ mentioned, up to eightpercent per year when you postpone it
beyond your full retirement age. Wetalk about this quite a bit on this
show. Show us any other financialproduct out there that has a guaranteed eight
percent annual return these days, andwe'd love to see that because that doesn't

(19:45):
really exist out there. So atthis point, you know, for many
of our listeners, this could bethe right answer to allow that Social Security
benefit to increase. So going onto our third item, which a pro
your cola increases will be larger,so the cost of living adjustments and the

(20:06):
longer you wait. So each year, the Social Security Administration obviously announces those
around November, and that's the onefigure all of our clients seem to know
when they walk in for their reviewsis oh, I know my Social Security
is going up or it's staying thesame. And this year the amount was
an increase of three point two percent. So what we're looking at for a

(20:27):
majority of folks out there, dependingon where their monthly amounts lie, approximately
fifty dollars a month or more iswhat they're going to see as an increase.
So point being, you're going tosee those compound over the years.
So delaying Social Security benefits not onlyallows you to lock in a higher starting

(20:47):
amount, but it increases over theyears as well. So that's important to
understand. Number four pro would beyou can change your mind at any time.
And we say this because people getmistaken and they go, well,
I know I can collect it atsixty two, and I think sixty five
and CJ's mentioned sixty seven. Theyget wrapped up in these numbers sometimes,

(21:10):
And yes, you can't start itbefore sixty two unless there's extenuating circumstances.
However, you can decide, youknow what, I can do it at
sixty two and a half or sixtythree or sixty three in a few months.
Again, you want to know whatyour full retirement age and how that's
going to affect your benefit. Butmany people think there's like this deadline they

(21:30):
have to pick up by a certainmonth and so forth. You just want
to be careful you understand the implications. In fact, something interesting to know.
Once you exceed your full retirement age, so you're beyond the FRA,
you can elect to receive up tosix months retroactive benefits in a lump sum
so that's one of the concerns thatpeople have sometimes is they might regret delaying

(21:55):
Social Security benefits if suddenly they hada health donosis that wasn't favorable, or
another circumstance that there could in factbe a situation where you could go retro.
And then finally, we look attax diversification as a pro While social
Security does become taxable once your totalincome exceeds the annual limit, even at

(22:17):
its highest inclusion in taxable income,only eighty five percent of that benefit is
taxed. So what that means isif you delay Social Security while spending down
say pre tax retirement accounts through yoursixties, you'll likely also be reducing your
future required minimum distributions your rmds,which we talk about quite a bit in

(22:37):
the show, because rmds are goingto be one hundred percent taxable. So
perhaps replacing that income in your seventiesand beyond with lower tax social Security benefits
might make sense for your personal situation. So, again, as CJ mentioned,
you know, figuring out what thatperfect time to start receiving Social Security
income is a per personal situation.Don't compare yourself to everybody else out there.

(23:03):
You want to sit down and figureout what's best for you. Some
fantastic benefits, some great options,but you want to make sure, as
Malia points out, that you're weighingthose options. Is a great data start
that conversation. So we talk withCJ. Closs and Malia Quavis, our
retirement planning professionals from Class Financial.You can give them a call six soh
eight four four two five six threeseven. That initial get to know your
appoyment at co loss Financial. Itwill be complementary to you again their number

(23:25):
six oh eight four four two fivesix three seven. The website coss financial
dot com. That's k l Aasfinancialdot Com. We'll take it down the
home stretch next with the class Quizquestion Leak as well as Money in Motion
with Coss Financial continues right here onthirteen ten WIBA. This is Money in
Motion with Class Financial, a funand informative show designed to help you get

(23:49):
answers to all your retirement questions inone place. Chatting with our retirement planning
professionals from Class Financial, CJ.Coss and Malia Equavis. They're telephone number
six oh eight two five six threeseven, no charge. That in you'll
get to know you appoyment, tech, loss financial, it will be complimentary
to you again. They're number sixoh eight four four two, five,
six three seven. Time really doesfly in a great show this morning.

(24:11):
If we have time flying just aboutfour o'clock today will already be one percent
through the year twenty twenty four.So we're already into the new year,
well into the new year, soyou want to make sure you're getting your
ducks in a row. And aswe as we wrap up this segment,
we'll get to the class quiz questiona week in just a moment. But
talking this morning about some of thegreat benefits and some of the things to

(24:33):
consider with Social Security, are theresome reasons why you may not want to
wait to begin that Social Security benefit? I'm still just trying to figure out
how you came up with one percentthrough the year. So, wow,
you are a super nerd sean anumber of seconds in a leap year,
and seriously, I get it,but too much time. But something to

(24:59):
think of. It does fly,doesn't it? It is one percent through
the new year. Time is slippingaway. Yes, there would be some
reason you may want to wait tocollect your benefits, and we'll talk about
some reasons why people choose to andthen some and not all of them are
good reasons, but they are reasonsin and of themselves. So con number

(25:21):
one to drawing your or waiting todraw your social security I should say would
be the break even point is typicallytwelve to fourteen years away. So for
a lot of people that are going, what are you talking about? Break
even points is this simple concept ofif I draw it, say sixty two
the earliest I can, my monthlyamount is lower. If I wait to

(25:41):
seventy, my monthly amount is higher, but I'm eight years behind, right
in that example of my former self. So you know, hey, the
former self that drew at sixty twohas eight years worth of income. So
the question becomes, if I waitto age seventy, even though my monthly
amount is more, I'm still muchneed behind in dollars. So how long

(26:02):
does it take me to catch up? And so the answer is twelve to
fourteen years, And so often peoplesay I just don't want to wait that
long. Now. Of course anext natural question comes into that, which
is longevity, right, family historyof longevity. But often people just don't
want to be that patient. Anothercondu to waiting to draw your Social Security

(26:23):
would be that. Some people tellus it's not just about the money,
and we would agree with that.So again, assuming your health status and
family history support if you live beyondage eighty two and you can afford to
put off receiving those monthly payments,then delaying your benefits until age seventy could
still It could could be a goodidea, but it may cause you some

(26:45):
anxiety of the unknown of what thehealth history might be in the future.
So this idea of hey, waitingbecause of my grandparents' age and my parents'
age makes makes mental sense, makesmath sense, but in my heart,
it gives me anxiety because I justdon't know if that will happen, and

(27:07):
all the meanwhile, I'm having todraw off my investments, which as the
market goes up and down, cancause again anxiety because you're drawing down those
investments or your savings account more rapidly. And we get that, so we
would say, yeah, sure,we understand, because there is no guarantee
this case. It's kind of likewrath accounts when people say to us,
wroth irays are the best thing everand everybody should save him to a roth
iray, we say that's that isnot a factual statement. That's a statement

(27:33):
as an unknown statement about future circumstances. In a similar way, if somebody
says to you, every American shoulddraw a social Security at sixty two or
sixty seven or seventy, that isnot a factual statement because you would have
to know the future to make afactual statement like that. And so ultimately
all of us are just doing ourbest to what I call stack the deck
in the favor of you, rightwho's going to draw? But the key

(27:56):
is that a lack of knowledge drivesand when fear enters the equation, what
do people do? They draw atsixty two because they know no better.
And so our job is to kindof work with people to come up with
a more educated opinion about what theyshould do. Con Number three would be
health issues and a fear of suddendeath. This kind of is similar to

(28:17):
con number two. Again, ifyou have chronic health conditions, draw sol
security right away. Con Number fourwould be stock market fluctuations causing uncertainty in
your portfolio. So if you thinkabout this, let's say you retire at
sixty five, so you have nomore working income, you jump onto medicare
and you wait to draw sold securitybecause people like us are telling you to.

(28:41):
And then you say, well,where am I going to get my
income to live off of them?We say, you've got enough in your
after tax investment account, go aheadand draw from there, and you start
drawing in. About a year later, at sixty six, the market tanks
and so now you're both drawing outof that account and the account is down
due to bad market performance. Thiscan be a mental challenge. You come

(29:02):
back into your advisor's office and theysay it's all okay, don't worry about
it, and you go, well, thanks for telling me that, but
I am worried about it because myaccounts down fifteen percent and I just drew
another ten percent for income. Soat times the uncertainty of markets and fluctuations
can draw people to just say I'mtired of this and they turn on soci
security. But that is the beautyof what Malia just mentioned. You can

(29:25):
always turn it on at any time. What we would just encourage people is
don't just knee jerk react and turnit on, because for every month that
you wait, you're getting an increase. And finally, con number five is
the future of soci security is uncertain. Now, we would say this is
not a great con because actually,if you understand Social Security Trust Fund,

(29:48):
if you understand Congress, you understandvoters and everybody who's living off of this.
There are a lot of constituents thatare interested in this thing not going
bank reped. However, if youread your socialecurity statement, they will tell
you we're not going to be ableto continue paying benefits at the current level
by about the year twenty thirty ortwenty thirty two. And that's not that

(30:10):
far away. And so people go, WHOA, that scares the heck out
of me. And given that,I just want to draw it. And
so you know that the conto waitinglonger is the uncertainty of the future of
social security. Now again, Ijust want to be clear before we finish
this point. I don't think that'sa reason to draw early, because there's
a lot of reasons why we believethat day will never come where they stop

(30:32):
paying socialecurity benefits. But we can'tguarantee you that, So back to making
factual statements. I don't know whatthe future holds. We just don't think
that ever becomes a reality, butwe understand when that becomes a driving force
to drawing your benefit early. Absolutelyfascinating stuff this week, as always from
Aleia Quavis and CJ. Closs,our retirement planning professionals from Class Financial.

(30:52):
The website class financial dot com that'sklaas Financial dot com. Don't forget if
you miss part today's program. Youcan also subscribe as well well online to
the podcast at cossfinancial dot com.That's Coss k l aas financial dot com.
The telephone number for the office herein Madison six oh eight four four
two five six three seven. Nocharge for that initial gets to know you
appointment tech Loss Financial. It willbe complimentary to you again their number six

(31:15):
oh eight four four two five sixthree seven. You want to hold on
to that telephone number now because it'stime for the Class Quiz Question the Week.
It works like this. In justa moment, I'll ask you the
class Quiz question the Week. Youwill then have thirty minutes from the inter
today's program to call the Class Financialoffice right here in Madison at six oh
eight four four two five six threeseven. If you are the first call
correct answer, you win this week'sprize, which is a twenty five dollars

(31:37):
gift card to cheesecake factory. Thisweek's coss Quiz question week is this.
If you wait till past your fullretirement age FRA to begin your Social Security
benefit, what percentage per year willbe added to your benefit? Is it
five percent or eight percent? Telephonenumber six oh eight four four two five

(31:59):
six three seven, first call.Correct answer when that twenty five dollars gift
card to the cheesecake factory. Andagain that's Class Financial's office right here in
Madison. No charge that initial getsto know you appointment deck Loss Financial.
It will be complimentary to you.Six oh eight four four two five six
three seven. Before we wrap upthis week, I know you guys thought
I forgot, but I'm gonna mentionnew photos up at glassfinancial dot com.

(32:19):
You know it's changing of the season. You know before I do. Sean,
I check, I check every morning. And and Malia, I know
in the past you have mentioned you'revery much involved with the change. Uh.
The problem with putting cookies on youron your homepage is it makes me
hungry for I'm not surprised that's reightsat all. Great show as always,

(32:40):
check out the website Class financial dotcom, the telephe Uber six oh eight
four four two five six three sevenc Jmalia, you guys have a fantastic
day. Thanks Sean. See youguys. News comes here why next year?
On thirteen ten wu ib A,This is Money in Motion with US
Financial Asset Advisors LLC, a registeredinvestment advisor registered with the SEC. The

(33:07):
content of this show is for informationalpurposes only and should not be considered individual
investment advice. Class Financial does notoffer tax or legal advice. Any opinion
offered during the course of this showis the opinion of that particular investment advisor
representative, and not necessarily the opinionof Class Financial